FIPB clears Maruti, Citigroup proposals

FIPB clears Maruti, Citigroup proposals

New Delhi: The Foreign Investment Promotion Board (FIPB) on Thursday cleared proposals by car maker Maruti Suzuki India Ltd to form a joint venture for setting up an exhaust parts manufacturing facility in Haryana, and by Citigroup Global Services to form a subsidiary to make an investment in special economic zone (SEZ) units.

Maruti, till recently known as Maruti Udyog Ltd, plans to form a joint venture with Japan’s Futaba Industrial Co. to set up a facility in Manesar, Haryana.

The proposal will see a foreign direct investment (FDI) inflow of around Rs45.90 crore, with Futaba holding 51% in the venture.

Under the other proposal cleared, that of Citigroup relating to SEZs, the world’s largest financial services group is looking to form a new subsidiary under its business process outsourcing (BPO) arm, which would make downstream investment for setting up SEZ units.

After FIPB approval, the proposals will go to finance minister P. Chidambaram for final clearance.

The Citigroup Global Sevices proposal does not involve any FDI inflow. It was only because the proposal relates to a foreign firm setting up a holding company that it came to FIPB.

Formerly known as e-Serve International, Citigroup Global Services is a captive BPO owned by Citigroup. As part of its expansion plans in the banking and financial servics industry, especially to cater to customers in export markets, it is looking to set up SEZ units through a new wholly owned arm.

FIPB also cleared a proposal relating to downlinking by US-based media company Bloomberg. The proposal involves an FDI inflow of Rs1.5 crore.